What Happens During a Home Inspection? Costs, Companies, and Red Flags Explained

One of the most important stages in buying or selling a house is to inspect the house. This phase often gives more confidence to buyers and helps vendors to understand what they should expect. But many people do not know what happens during inspection, how much it costs, or even why it is necessary to conduct inspection before selling their house in the market.

This blog will explain everything in simple language, including what happens during home inspection, the best companies near you, cost, reasons and warning signs that you should never ignore.


What Happens at a Home Inspection?

The inspection of the house is like your health check. A licensed inspector falls on the property and inspects the important parts of the house very carefully. Their goal is to detect problems that can affect the cost of security, price or repair in future.

What usually happens is this:

  • Exterior inspection – Check the roof, siding, gutters, foundation, and drainage on the outside for cracks, leaks, or damage.

  • Interior inspection – The walls, floors, ceilings, doors, and windows are all checked to see if they are stable and work properly.

  • Plumbing – Inspectors check for leaks or low water pressure in faucets, water heaters, and pipes.

  • Electrical – outlets, wiring, circuit breakers, and the system's overall safety.

  • HVAC system – Testing heating, ventilation and air conditioning units to see how well they work.

  • Attic and basement – Inspector examines insulation, ventilation and any symptoms of fungal or insects.

Inspection usually takes 2 to 4 hours, and the inspector gives you a written report with pictures.

You can also see the National Association of Realtors Home Inspection Guide to know more deeply.


The 5 Best Home Inspection Companies in My Area

Finding a good inspection company is very important. Here are the five well-known names in the US that you can trust, although your options may vary depending on your habitat:

  1. House Master – One of the oldest and most recognized inspection companies.
  2. Pillar To Post – Known for detailed reports and excellent customer service.
  3. AmeriSpec Inspection Services – Covers everything from foundation to roof.
  4. WIN Home Inspection – Offers both buyer and seller inspection services.
  5. National Property Inspections (NPI) – A nationwide service with consistent standards.

👉 If you’re selling a home fast for cash in California, you can also connect with XLNC Exotic, where inspections are part of the process to help homeowners close quickly.


What Is the Average Cost of a Home Inspection?

The cost of a home inspection depends on size, age, and location of the property. On average:

  • Small homes (under 1,500 sq. ft.): $250–$350
  • Medium homes (1,500–2,500 sq. ft.): $350–$450
  • Larger homes (2,500+ sq. ft.): $450–$600

According to Bankrate, the national average is around $400.

Extra services such as radon testing, mold inspection, or pest inspection may add $100–$300 each.


What Is the Purpose of a Pre-Listing Home Inspection?

A pre-listing home inspection is done before the seller officially lists the property for sale.

Here’s why it’s useful:

  • Transparency – Sellers know about problems upfront and can fix them before buyers see the home.

  • Faster sales – Buyers feel more confident when a recent inspection report is available.

  • Fair pricing – Helps set a realistic price by considering the true condition of the home.

  • Fewer surprises – Prevents last-minute negotiations or deal cancellations.

For sellers in California who want to speed up the selling process, a pre-listing inspection combined with cash buyers like XLNC Exotic can help close deals without long delays.


How Much Does a Pre-Listing Home Inspection Cost?

The cost of pre-listing inspection is similar to the buyer's inspection, which is up to $300-$500 depending on the size and location of the house.

Some inspectors offer discounted rates for pre-lolling inspection, as they know that sellers often request less additional features.

Although this is an additional cost, it can actually save thousands of rupees to vendors by preventing prices fall during interaction with the buyer.


What Is the Biggest Red Flag in a Home Inspection?

Inspectors get many types of problems, but are far more serious than others. These are the biggest red flags:

  • Foundation problems – Cracks, uneven floors, or sinking can cost tens of thousands to repair.

  • Roof damage – Major leaks or old shingles mean big expenses soon.

  • Mold or water damage – Can lead to health risks and expensive remediation.

  • Electrical hazards – Outdated wiring, overloaded circuits, or safety code violations.

  • Termite or pest infestations – Often hidden but damaging to structural integrity.

If these things are seen in the report, then the buyers will either go away or demand a huge discount. Sellers should take care of these things before listing to avoid surprise.

For more details, see Realtor.com’s guide to red flags in home inspections.


Extra Tips for Homebuyers and Sellers

  • Buyers – Always attend the inspection so you can ask questions in real-time.

  • Sellers – Fix small repairs like leaky faucets or loose doorknobs before inspection day.

  • Both – Use the report as a negotiation tool—it can help reduce stress and avoid hidden surprises.

👉 Pro Tip: If you’re in California and need to sell your house fast, check out XLNC Exotic Sell Fast for Cash Guide to see how inspections fit into quick closings.


Frequently Asked Questions (FAQs)

Q1: How long does a home inspection take?
Most take 2–4 hours, depending on property size.
Q2: Who pays for the home inspection?
Usually, the buyer pays, but sellers can order a pre-listing inspection.
Q3: Can a home fail an inspection?
No. Inspections just show issues—it’s up to the buyer and seller to decide what to do.
Q4: Is a home inspection required?
Not legally, but lenders and smart buyers almost always require one.
Q5: What happens after the inspection report?
Buyers may request repairs, renegotiate the price, or in rare cases, walk away.

Final Thoughts

The inspection of the house is not just another important task. This is the step that protects buyers from expensive surprises and helps vendors to create confidence. From knowing the average cost ($300-$500) to recognizing the greatest apprehensions such as foundation or roof problems, inspections give you clarity before taking one of the biggest financial decisions of life.

Whether you’re buying your first home or preparing to sell, remember: knowledge is power. And if you’re looking to sell your house quickly in California, XLNC Exotic can make the process faster while ensuring inspections don’t slow you down.